What was the asking price of the houses you viewed vs budget? Did OIEO, OIRO matter?

Bibbitybobbitybop

I thought my budget was about 500k. Found a house on for 495k and eventually agreed 450k. After my accounts were done I realised we could have gone up to about 650k. But there's no way I'd have wanted to borrow that so I'm happy with the 450k agreed (mortgage of £380k (20k extra on top)).

UnderOffer

We viewed a house that stated OIEO, we had no intention of offering over, offered 30k below advertised price, and vendors counter offered with £25k below their price, Sale agreed but I always wondered why it stated OIEO when they weren’t expecting that, probably just EA testing water. 

datlex

My budget was £105,000 with £10,000 deposit.  I actually bought at £90,000.  Place had been on market for over my budget initially so I didn't consider it.  Then price came down.  Was being sold to pay home fees.  

Scotbot

There is no harm viewing houses above your budget, it will help you assess the market. Offers over only works in a sellers market where there is likely to be multiple offers.  Offers in the region of is the same as a flat price in my opinion. 
The marketed price depends on the vendor - some are more realistic than others, some are more motivated to sell than others. After a few viewings you should have a good idea of whether a price is realistic or ambitious. As to how likely a cheeky offer is to be accepted that comes down to how much the vendor needs to sell it.

daivid

My budget as a ftb was not a clear top price as my mortgage offers (over £300k) went way beyond what I really wanted to spend/commit to monthly. However I had a price in mind (about 220k) but was prepared to go a bit higher if the house was 'worth it'. I browsed RM etc at up to £300k and viewed in person 5 houses listed at £260k, £250k, £230k, £225k and £163k. The most expensive was clearly over priced, eventually sold for £245k, the cheapest needed work but sold for asking on the day offers were to be in by. I bought the house in the middle for £215k having abandoned negotiations at £240k on the most expensive house.

Very little OIEO or OIRO around here at the time, but those I saw on the listing sites looked delusional and as none of the houses called out to me I didn't want to waste time on them. I'm sure it has been said before but time on the market should give an idea of which prices may be more flexible: a low offer is more likely to be considered on a house thats been up for 6months+ than one listed last week.

homersimpson246

As the other posts you need to offer what its worth to you, my advice would be if 230K is your maximum start below this at say 220 or 225K so that you have some room to move as a lot of people will not want to take an offer significantly below their asking price but if they can beat you up a bit they will feel better about it.

I was told by a friend of mine who was retired surveyor, if your first offer isn't so low that your embarassed to make it then its too high!

If your a proceedable buyer in this market most people with any sense will consider your offer, if they are looking to move up the ladder they might have already found their dream home and can negotiate a similar discount with them so they don't lose out.

AnotherJoe

scrola said:

natasha22 said:

Hello, Im just wondering wether you viewed houses that were out of budget? Did you change what you viewed based on OIEO, OIRO? 
For example our budget is 230,000. Weve opened up our search to about 250,000 on the basis an offer of 230 would be 90% of asking price, but viewing a house so out of budget when we know our offer is going to be low feels cheeky! 

Don't think like a victim, the vendors will have put the property on at a "cheeky price,just as much as you are thinking of putting in a "cheeky offer".  Don't even think about OIEO or OIRO or any other EA guide. Make comparisons, have a target price irrespective of what they are asking, make an offer below that and go to sleep. If they are serious sellers, they will come back with a counter offer, and you work on it. If they are time wasters who give you the "I know what my house is worth and I will not acept a penny less", walk away. No perfect house is perfect, another one will come along.

You don't know that. Some vendors will set a realistic price to avoid alll teh faff and geta quick sale but maybe That's a poor idea and they should just put 10% on the price so the buyer thinks they gotta bargain? 

Tightaz

Look at many properties and offer what you think it’s worth. At the end of the day your bank will require the property to be valued. Should that come back below what you have offered it’s excellent ammunition to change your offer. If your vendor still wants you to pay over the valuation, it will have to be cash so you might end up pulling out very early.